How To Make Money With Buffett Thought

A few days ago Barbie China's business is bustling. On TV, this investment genius who looks like KFC's grandfather, took out his wallet and smiled and said to the hostess, "why do you ladies like to ask me how much money I have in the bag? Look, it's almost 800 dollars. I'll bring this with me on this trip." When asked Investment In his secret, he added the four words, "value investing", and added that investment must be rational. It is important to judge independently and not be influenced by the outside world, but he seems to be born with that. It looks really envious, but those of us who don't join Barbie's dinner don't have to abandon themselves and enjoy a Buffett's reverse thinking lunch.

Don't want luxury and happiness.

If he plays a table game with Buffett, he will probably be a Dezhou poker player. Champion But surely it will not be a real estate tycoon. Because Buffett 62 billion dollars is not earned by real estate at all. His investment is very rich. He has been good at horse racing since he was young. He won a $3 million bet in the world cup because he won the French team home. But he bought it only two times. One is his old house in the town of Omaha, which can almost be called Buffett's old house. He bought it in 31500 dollars in 1957 when he was 27 years old. Since then, he has lived there ever since.

Many people would say that if I were as rich as Buffett, I would at least buy an old castle or a luxurious house like Bill Gate. However, Buffett calmly thought that his house was accompanied by his growth, so far more than 52 years of memory and time, accompanied by many visitors. No other house in the world can bring so many happy memories to itself.

To be happy, not to have a mansion is Buffett's unique value, but his wife will not accept it. In 1971, when Buffett was 41 years old, his wife asked Buffett to buy a $150 thousand house at Laguna beach, which became their summer home. But Buffett's way of life still let his wife Susan move to California alone from Nebraska in 1977. Buffett said, "that thing should not have happened. That was the biggest mistake I made. " However, it is precisely because the funds are not used in real estate that they are not interested in, so that Buffett can graduate several years after graduating from University, and has registered his own investment company with several friends, and has rolled out a bigger snowball than real estate.

What does your authority say?

Buffett was known for his reputation in China, but it really seemed to be famous for his investment in PetroChina. PetroChina, after all, is a nightmare for many people, but Buffett began buying PetroChina several times in 2002. Boxill Hathaway, which is based by Buffett, spent more than HK $100 billion in Hong Kong dollars, quietly nibbling 1 billion 109 million shares of PetroChina.

After a quarterly report in 2003, Boxill Hathaway's shareholding reached 6.31%, and the investment community was in an uproar. Analysts from Wall Street, Hongkong and London have expressed their views that Solomon, Smith Barney and other investment banks are proposing to sell PetroChina. Cao Renchao, a Hongkong columnist, expressed his views in a straightforward way. Buffett invested in PetroChina, which was "stupid." Fund managers were also not confident enough, and investors began to sell heavily, and China Petroleum shares fell sharply.

However, Buffett did not pay any attention to the "reminder" of these well-known analysts, but continued to work alone. He always ignored what authority said. Buffett once invited a 29 year old hedge fund manager to lunch with him for free, because the latter's Stock Research Report impressed him deeply. On April 9, 2003, 11 and 15, he bought 80 million 490 thousand shares, 85 million 372 thousand shares and 31 million 410 thousand shares at HK $1.66, HK $1.657 and HK $1.66 respectively, and on the 17 day, the pace was quickened, and 176 million 580 thousand shares were bought on the same day.

In 2007, Buffett sold PetroChina 1.3% of its shares to 4 billion dollars. Buffett explained that the market value of oil was about 37 billion dollars while he and Munger thought it was worth about 100 billion dollars. However, in the second half of 2007, the market value of PetroChina rose to $275 billion, and he sold stocks. "A company must have the potential of sustainable development, competent and trustworthy management and the right price, which will be our concern."

Principles are not rigid.

Is Buffett a rigid person? He has always insisted on his investment principles. Maybe he knew this when Buffett was a boy. He was a little scholarly at that time, and in some cases he was rather stubborn.

The first woman he liked was Daisy Mayer, the heroine in the cartoon Lyle Abuna. In the cartoon, Abner often plays the role of Meier. For example, Abner seems to be looking at Meier with love and love. Mayer can not help but say a lot of sweet honeyed words. In the next scenario, Abner avoids the embrace of Meier and embraces a piglet behind Meier. Nevertheless, Meier still loves Abner, so Buffett seems to be in a mood like Mel.

But Buffett doesn't seem to be so stubborn in investing, for example, he said that value investors had better avoid strong cyclical industries, because the safety margins of those industries are hard to gauge; and he does not recommend investing in "wheels" businesses. However, in the new market situation, Buffett invested $1 billion 800 million in 2008 to invest in BYD, a cyclical and wheeled enterprise. It seems to Buffett that the principle is not rigid as long as it can capture more investment value.

Be tolerant and admit the wrong few.

Buffett once admitted that his biggest loss was to invest in Dexter shoemaking. This is the company that he invested in in 1999, which made him lose at least several billion dollars. In his letter of apology, he said that Dexter management is no match for other companies. But most of the shoes are produced in the United States, and the competition between American manufacturers and overseas manufacturers is very difficult. Of the 1 billion 300 million pairs of shoes consumed in the United States in 1999, about 93% were imported products, and the very cheap labor force abroad was the decisive factor.

Buffett admitted in 2001: "Dexter in the years before our acquisition, in fact, several years after our acquisition, despite the brutal competition from overseas shoe companies, business is still very prosperous. At that time, I thought Dexter should be able to continue to successfully deal with international competition, and it turned out that my judgment was totally wrong.

Boxill Hathawayz David Sokol, CEO of Sino US energy, had a recollection of Buffett. He remembered a meeting. He told Buffett that he had to write off 360 million dollars for a new project. To his great surprise, Buffett said, "David, we all make mistakes." Sokol was shocked by Buffett's reaction, because most people could not accept mistakes.

"If I had, I would have fired Sokol." Sokol himself said. But Buffett said, "if you want to make mistakes, you can't make decisions." He said he had made a bigger mistake than Cole. The meeting took only 10 minutes. Sure enough, Sokol later studied new energy projects and made investments in BYD. At least, it is a decision without making mistakes.